An offer of compromise made at trial under Part 2 of Order 26 of the Supreme Court (General Civil Procedure) Rules does not operate of its own force on appeal, but the appeal court retains a discretion to take the rejected offer into account when awarding costs. The existence of a separate regime for offers of compromise on appeal (Part 3, Order 26, r 26.12) and the failure to make an offer under that regime are relevant factors that may limit the exercise of discretion to award indemnity costs of the appeal.
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